New Horizons: from tech marketer to record label owner

This year, I had the good fortune to help my son, 18-year-old singer-songwriter Zach Gospe, as he recorded and released a six song EP (extended play record) called New Horizons. Zach has always loved music, having studied piano, drums, bass and guitar starting at age six. He began writing songs in junior high and got the attention of his classmates while playing a song for his sophomore english class at Los Altos High School. His best friend since kindergarten, Riley Soward, became his manager and helped encourage Zach and promote his music and performances.

Last fall, I took Zach and Riley to the West Coast Songwriters conference at Foothill College in Los Altos Hills, CA. Riley, being the budding businessman he is, had studied the conference pamphlet and recognized a famous producer, Mark Mazzetti, and introduced himself. Mark, president of Record Company in a Box, is the former VP A&R (Artist & Repertoire) at A&M records and worked with John Mayer, Janet Jackson, Sting and many other amazing artists. Riley gave Mark a copy of Zach’s first EP, Live at Midnight, and told him Zach sounds a bit like John Mayer (one of Zach’s great influences). Then Riley introduced Mark to me and Zach and we ended up having dinner together.

Mark liked Zach’s music and story-telling and offered to provide A&R coaching and produce a professional EP. The catch – it would cost $10,000. Riley’s dad, Bill Soward, suggested the crowd-funding company Kickstarter and the 17-year-olds at the time, launched a successful campaign, raising $10,600!  In February 2013, I took Zach and Riley to Hollywood for 10 days where Zach recorded vocals and guitar parts for the songs at Through the Air Studios. The songs were recorded and arranged by sound engineer and musician Anthony Brodeur and then mixed by Brian Scheuble.

Getting the songs recorded was just the start. I offered to help Riley and Mark manufacture and launch the CD. I had no idea at the time of what was involved in releasing an indie record but it is not unlike any other product launch.

Business entity formation
Like any industry, there are an amazing amount of acronyms and nuances in the music business. We hired an excellent entertainment attorney, Ned Hearn, to guide us through the process of setting up Zach’s publishing company, Zach Gospe Music Publishing, and an indie record label, Honey Spun Records, of which I am now owner & president. Ned reviewed contracts and royalty structures and answered many, many questions regarding the revenue stream and accounting best practices.  We copyrighted Zach’s songs and EP with the United States Copyright Office and got him established as a writer and publisher with ASCAP (American Society of Composers, Authors and Publishers) which pays royalties to songwriters and publishers for the public performance of music. We or a designated agent would issue licenses and collect fees from a third party user of the music of Zach’s for mechanical licenses (when a song is recorded and distributed via CD or vinyl, digital download or streaming), sync licenses (when a song is used in TV, film or games) or when a song is printed and sold in print or as a download.

Product launch team
With any product launch, project management and ongoing communications are key to success. Our core team of myself, Riley and Mark met at least once per week via Skype and were in daily email communication. We planned our strategy and tracked our tactical action items via Google Docs.

Marketing – the Four Ps
I know that over the years Philip Kotler’s famous Four Ps (product, place, price, and promotion) have morphed into many variations, but they still pertain to a successful record launch:

1. Start with a great product
   In addition to fabulous original songs and top-notch recording and mixing, Zach needed to name the EP (coming up with New Horizons – a line in the song “Alleyways”) and we needed photos and graphic design work for the CD layout.  Zach and Riley’s classmates at Los Altos High School helped out – Nicole Falsetti was the photographer and Rebecca DeShetler did the graphic design layout.
2. Plan your distribution strategy (place)
   These days, digital distribtion is critical for getting one’s music out there. We manufactured the CD through a company called Disc Makers and used their sister company CD Baby to sell the physical CD and get the EP on digital download and streaming services like iTunes, Amazon.com, Rhapsody, Spotify, etc. Mark also worked tirelessly to secure sync license deals to get Zach’s songs played in public venues (such as restaurants and stores) and placed in TV, film or games.
3. Set a competitive price
   One of Mark’s music industry contacts suggested the price of $10 for the CD, $5.50 for a digital download of the EP or $.99 for downloading individual songs. This is consistent with pricing for other EPs and iTunes per song pricing structure.
4. Promote like mad – with an integrated marketing mix and great content
   Zach’s initial audience was his high school classmates but we wanted to appeal to a broader audience with New Horizons. Knowing your target customer persona is key as well as how to reach them. We used an integrated marketing mix consisting of a new WordPress website, zachgospe.com, social media (YouTube, Facebook, Twitter, Instagram, Pinterest and Tumblr), and many music-promoting sights like Soundcloud, VH1/MTV, Reverbnation and Bandcamp. Events were also key. Zach performed at multiple house concerts, an open mic showcase and the New Horizons EP Release Party at a local hotel. Riley worked the PR angle – making contact with local newspapers, blog sites and radio stations. Mark networked with music execs at major entertainment companies like CBS TV, Disney, Microsoft and Warner Brothers and sync licensing companies such as Dearth Music Licensing and Rumblefish. We stockpiled videos of Zach performing and submitted songs to contests. We created a content calendar and have had a steady stream of stories and videos to share.  For example, Zach and Riley’s story was featured on the Pope & Marla show on Mix 106.5 in San Jose and New Horizons won a bronze medal for pop from the Global Music Awards.

On to New Horizons
Fall is here and Zach and Riley are now off to college. Zach is attending Vanderbilt University in Nashville, TN to study liberal arts (and experience the Nashville music scene). Riley is attending Boston College as a presidential scholar!  Our team continues to promote Zach and his music and are ready to take on new projects down the road.

I want to thank Zach for following his passion to create and perform his amazing songs, Riley for being his outgoing, ready-to-take-on the-world manager, and Mark for pounding the pavement and for his sage advice, guidance and support. I also want to thank Mike Gospe and Riley’s parents, Teresa Kersten and Bill Soward, for their enthusiastic support over the past year. In addition, we couldn’t have made New Horizons without the support of 161 amazing Kickstarter supporters. It has been a fantastic experience. I have learned a ton about the music business and how to run an indie record label and have enjoyed every minute of it. I look forward to attending music industry conferences, expanding my knowledge of the industry and embracing new opportunities.

PS – I wouldn’t be doing my job if I didn’t ask you to “like” Zach Gospe on Facebook, “follow” him on Twitter and “subscribe” to his YouTube channel. Oh, and listen to New Horizons at ZachGospe.com. Enjoy!